Because of inflation, the prices of Australian goods are rising faster than prices of goods in Great Britain. If purchasing power parity holds, then:

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According to the purchasing power parity theory, the exchange rate between two currencies should adjust to ensure that a basket of goods costs the same in both countries. If the prices of goods in one country (Australia) are rising faster than in another country (Great Britain) due to inflation, then the currency of the country with higher inflation (Australian dollar) should depreciate against the currency of the other country (British pound) to restore the balance. Therefore, the Australian dollar will depreciate against the British pound.

Because of Inflation, the Prices of Australian Goods Are Rising